11-14-06 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
November 14,2006
The meeting was called to order by Mayor Kirsch at 5:05 p.m.
Staff Present:
Martin Kirsch, Mayor; Bill Kilian; Susan Rosenberg; Sue Sandahl (arrived at
5:10 p.m.); and Fred Wroge.
Steven Devich, City Manager; Mike Eastling, Public Works Director; Pat
Smith, Acting Community Development Director; Brian Young, Utility
Superintendent; Cheryl Krumholz, Recording Secretary; and Corrine
Thomson, City Attorney.
Members Present:
Item #1
Public Works Director Eastling made a Power Point presentation (Clerk's File No. C-425) on
the Metropolitan Airports Commission (MAC) Sewer Rate. He stated it is a City Council policy
decision to determine what is a fair rate to charge. The rate could be set with the December 12
budget resolutions.
Council Member Wroge asked about MAC charging less for water for the new City's
maintenance garage.
Public Works Director Eastling explained how the water is a pass-through process.
Allan Dye, MAC representative, reviewed the line system used to get water to the garage,
including the "tunnel" connection to Minneapolis.
Public Works Director Eastling explained the infiltration and inflow process.
Mayor Kirsch said the City and MAC need to be good neighbors and expressed support for
including the proposed new rate in the budget resolution.
The City Council was in agreement to the proposed metro rate and that it be included in the
budget.
Item #2
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November 14,2006
City Attorney Thomson reviewed the major changes in the eminent domain laws that the
Legislature adopted earlier this year. Some changes are procedural and not significant while other
changes have the potential to increase litigation costs and the financial impacts for commercial
properties.
Mayor Kirsch asked about the Cedar Avenue redevelopment area being under the "old" law or
"new" law.
City Attorney Thomson stated it is the.old law with a 10-year provision.
City Manager Devich added the area impacted is the district approved by the Legislature.
Council Member Wroge asked about the timing of this coming before the City Council now.
City Attorney Thomson stated because of the unique circumstances and effective date of the
provisions, in December staff will come forward with a resolution for City Council consideration to
authorize the use of eminent domain for the right-of-way needed as part of the 66th Street/ Portland
Avenue project. If the resolution is adopted, the action will be commenced prior to January 15, 2007,
allowing the City to utilize the "old" eminent domain laws. The resolution could be pushed back a
month but has cost implications for the City. Discussion tonight is to ensure the City Council is
informed on the laws and its implications.
Council Member Wroge expressed concern that this is being done to beat the clock and the
changes did not appear insurmountable.
City Attorney Thomson said the City Council will need to decide to wait or proceed.
City Manager Devich stated the condemnation proceedings could have been filed under the
old law but staff wanted to make sure the City Council was informed to make a policy decision. The
resolution on December 12 moves the 66th Street/Portland Avenue project ahead under the old law.
If the resolution is not adopted, the threshold has been crossed and the City must work under the
new law.
City Manager Devich stated staff asked City Attorney Thomson to make a presentation on this
issue because there are significant differences in costs to the City and taxpayers. The City could
work under the old law but the City Council could direct that certain new law provisions apply.
City Attorney Thomson said there is some flexibility under the old law and being on the cusp of
change could be taken into account for some options. There is an ability under the existing law to
provide for a re-establishment amount for commercial properties.
Council Member Kilian said there appears to be no significant differences for residential
properties. The issues appear to be for commercial properties. If the City does not keep a stake in
the ground, there is the potential for the City to become a poster child for court cases.
City Attorney Thomson said she expects the new law will encourage increased litigation. If the
City proceeds under the old law, there is flexibility to treat people fairly.
City Attorney Thomson discussed some provisions in the new law that she believes are
questionable.
Mayor Kirsch said the League of Minnesota Cities is tracking this legislation and encourages
cities to keep them informed.
City Manager Devich said staff will bring a resolution to the City Council on December 12 to
proceed with filing a petition of condemnation for acquisition .of right-of-way at 66th Street/Portland
Avenue. However, this is completely a City Council policy decision on how to proceed.
Council Member Kilian said the filing of the petition does not mean it will be used.
Mayor Kirsch stated negotiations take priority.
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November 14,2006
The meeting was adjourned by unanimous consent at 6:21 p.m.
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heryl rumhOT;
Recording Secretary
Date Approved: November 28, 2006